EPA Wins Legal Battle Against Higher Ethanol Levels In Fuel

The battle over the levels of ethanol in fuel may not have stopped just yet, but a decision by the U.S. Appeals Court will certainly weaken the challenge.

Several groups, including grocery, auto and petroleum industry bodies filed suit against the Environmental Protection Agency in November 2010, challenging a rule to allow higher concentrations of corn-based ethanol in gasoline.

Reasoning ranges from high demand of corn-based ethanol pushing up the price and limiting supply of corn for food, to automakers unsure of the long-term effects of ethanol on engines.

According to Bloomberg, the court ruled that none of the groups could show they had been harmed by the EPA's decision to offer E15--15 percent ethanol content in gasoline.

Droughts across the midwest have led to lower corn yields than usual, reducing food stocks and pushing up the price of corn and other crops.